Anonymous Ownership of an LLC for Asset Protection

There are currently 3 states, that I can find, that allow truly anonymous LLC formation. Delaware, New Mexico, and Wyoming allow the formation of an LLC without disclosing the names of the members or managers. This is a very powerful ability that can be utilized to create asset protection to deter frivolous attacks on your property. One of the rules to good asset protection is to create separation between you and any risky assets. If you have an LLC you get separation. If you have an LLC without your name associated with it you have even better separation. Before someone can attack your assets they first must find out who to attack. It they can’t find you they have a harder time serving you. Also if they are trying to attack you personally they won’t be able to find all your assets since your name is not in the public records. You may control the asset but you do not own it.

Some other states claim to allow LLC formation without the names of the owners on the paperwork that is registered by the state. Nevada for example lets you form the LLC but within 30 days you must register the Managers or if member managed the Members of the LLC. This is not anonymous! Yes if it is Manager Managed the members’ names can be kept private but someone must be registered. Do you think a manager of an LLC will keep your privacy when they are faced with a lawyer putting them in jail? Now if it happens to be a single member LLC odds are the Manager is also the member. Not the best setup for privacy. All LLC’s offer asset protection however, If you can keep your personal info out of the public records it is even better.

So which state should you use? I can’t tell you which one is best for your situation, but I will attempt to present some of the basic costs and issue that you will need to be aware of. I am not a tax advisor so this info is just for reference.

Delaware
State filing cost: $90.00
Franchise filing requirements: No Report / $250 annual tax
State taxes: Personal tax 2.2% to 6.95% if in state income

New Mexico
State filing cost: $50.00
Franchise filing requirements: No annual report or tax required
State taxes: State income tax if business in the state 4.9% if over 12,000

Wyoming
State filing cost: $100.00
Franchise filing requirements: $50.00 annually
State taxes: No personal or state income tax. State sales tax 4%